Digital Health Market: A Recap of Research2Guidance’s 2023 Analyses

As we look back at the healthcare landscape of 2023, digital health solutions emerge as catalysts for transformation, poised to reshape the delivery of healthcare. What insights and topics from 2023 have stood out in Research2Guidance’s digital health space?

Research2Guidance has been constantly monitoring the global digital health industry since 2010. Amidst the financial challenges and mass lay-offs faced by digital health companies in 2023, questions such as “What is the best approach to make money in digital health?” and “Which distribution channels are the most effective for digital health solutions today?” become critical considerations. The exploration through global surveys revealed opinions and insights on these and many other questions from digital health stakeholders and decision-makers worldwide. These include effective monetization strategies, the dynamics of HCPs engagement, how these interactions drive the success of digital health applications, the role of digital health partnerships, and overarching trends shaping the industry’s trajectory.

These insights illuminate both the opportunities and challenges, painting a vivid picture of the strategic maneuvers employed by the digital health fraternity.

What are some of the key insights and analyses published on in 2023?

How to Make Money with Digital Health Solutions

  • Monetization Approaches: There is a growing need for sustainable monetization strategies to drive innovation and ensure long-term viability in the industry. Securing payment from health plans and government entities emerged as the most viable approach (38%), while 24% suggested monetizing the core business while providing the digital health tool free of charge. What are the top monetization approaches and customer targets for digital health solutions? Learn More
  • Global Reimbursement Opportunities: The reimbursement opportunity and potential for digital health solutions vary across countries. Factors such as regulatory environment, market size, and the healthcare system’s readiness to integrate digital health solutions contribute to the variation. The USA and Germany stood out as leaders in providing reimbursement opportunities for digital health vendors. Which countries have the best reimbursement potential? Learn more
  • Reimbursement Challenges: Monetization through reimbursement is a complicated and lengthy journey with multiple steps, often proving to be time-consuming and resource intensive. Negotiating pricing and contracting with healthcare providers and/or insurance companies is critical aspect of the reimbursement process, followed by managing the adoption by the end users. Which steps are perceived as most challenging? Learn more
  • Out-of-pocket: In 2022, consumers in Europe spent more than $500 million in health and fitness and medical apps listed in app stores during that year. A significant global trend surfaced, indicating consumer willingness to invest in digital health services for weight loss, mental health, and fitness solutions. The subscription-based payment model gained prominence. Learn more

Strategic Shifts & Business Potential

  • Top Therapeutic Area for 2023: Mental health emerged as the clear winner for the therapeutic area with the best business potential. Metabolism and endocrinology which used to lead the board for years is no longer the leader even though trailing behind with cardiology. Women’s health has had a long jump to reach the fourth spot in 2023. What is the change in the business potential of top therapeutic areas over 2015-2023? Learn more
  • Digital Chronic Care Impact: Digital health solutions showcased positive clinical evidence in symptom self-management, HCP-patient communication, and mental and physical well-being. Positive clinical evidence on patient outcomes is available for all three domains, however the quality and maturity of clinical evidence varies significantly depending on the chronic condition type. Digital Chronic Care. Does it work? Learn more

Effective Collaboration with Healthcare Professionals

  • Collaboration Approaches: Most digital health companies collaborate with HCPs in clinical studies, emphasizing the significance of this engagement for the success of Digital Integrated Health Applications (DIHAs). Yet, HCPs are rarely seen as business partners supporting the distribution and integration of the solutions into practice. How to best collaborate with HCPs? Eight approaches but no silver bullet. Lear more
  • Budget Allocation: While 57% of companies deem HCP engagement “very important,” only 12% classify their strategies as “very successful.” 73% allocate up to 30% of their total budget for HCP engagement. But, for what? Learn more

Start-ups and Corporate Partnerships: A Complex Landscape

  • Unveiling the Challenges: Most of the top 50 pharma, medtech, hospital chains or research institutions worldwide have closed partnership deals with digital health startups to support innovations over the last years. Still, it seems that both sides have not found their way to talk and work together. Why are start-ups and corporates not a good match today? Learn more
  • Success Rate: Only 13% of partnerships between start-ups and healthcare companies are successful. Main reasons for failure are missing partnership strategy, slow processes and a mismatch of expectations. Learn more

R2GConnect Partnerships Builder

  • Partnership Discussions: R2GConnect has supported more than 100 partnership scouting projects since its official launch in October 2022. Most requests came from digital health accelerators, pharmaceutical companies, insurance companies and regulators, as well as service providers and their startup programs. More than 1,000 partnership discussions were started. What were healthcare companies and investors looking for? Learn more
  • Start-up digital health community: R2GConnect has managed to become one of the largest global databases for digital health start-ups. 8,000+ start-ups from all over the world providing digital health services have registered on the platform to find their next industry partner, investor, conference pitching opportunity or free IT or market access support. Looking for digital health companies? Get applications via R2GConnect. Learn more

Allis.Health, Global Digital Health Analyst Platform

  • Ongoing Market & Competitor Monitoring. Expert Insights: Allis.Health serves as a catalyst for ongoing market and competitor monitoring, delivering actionable insights globally. Channels, meticulously tailored for segments like digital oncology, DTx, and digital diabetes, underpin the platform. Distinguishing itself from conventional methods, Allis.Health surpasses news and data presentation by curating information through an expert lens. What role do Ambassadors play, and what are the future plans? Learn more

NEW in 2024: Global Digital Health Business Outlook -2024

  • Finally, R2G has introduced its Annual Global Digital Health Business Outlook Survey – 2024. This survey aims to provide insights into the digital health business outlook for the upcoming year. Your participation will contribute to our understanding of expected developments in investments, funding, business potential, partnerships, and key trends in 2024. We encourage you to take part in this survey today. Have your say!

R2G has been constantly monitoring the global digital health industry since 2010. We are happy to talk and share our experience! For more information reach out to [email protected]